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Life Science REIT PLC said on Monday it has completed the acquisition of Oxford Technology Park for up to £183 million.
The life science property investor said Oxford Technology Park is a 20 acre science and technology park. It is located less than 2 miles from Oxford University's Begbroke Science Park campus, 7 miles north of Oxford city centre and adjacent to Oxford Airport.
Life Science REIT said the purchase price was £120.3 million. The deal also includes debt of £33.8 million and up to £62.7 million of forward funding. Once fully developed, the park will comprise up to 450,000 square feet of mixed-use life science space and amenity assets.
The acquisition means the company has now fully invested the proceeds from November's oversubscribed IPO in seven transactions at a total acquisition value of £383 million.
Life Science REIT said the Oxford deal represents a net yield on purchase of 4.75%,with headline rents of between £16 and £20 per square foot for hybrid space and £28 per square foot for offices.
Commenting on the acquisition, Simon Farnsworth, managing director of Ironstone Asset Management Ltd, Life Science REIT's investment adviser, said: ‘There is virtually no new supply of this type, size and quality of space in the Oxford catchment and we are delighted to have secured such an important and strategic asset of scale for our shareholders.’
Life Science REIT was trading 0.2% lower in London on Monday midday at 101.83 pence.
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